Aon Signs Definitive Agreement To Provide Claims Administration On Behalf of Reliance.

Business Editors

CHICAGO & NEW YORK--(BUSINESS WIRE)--Dec. 21, 2000

Aon Corporation (NYSE: AOC) today announced that its Cambridge Integrated Services Group, Inc. subsidiary has completed a definitive agreement with Reliance Insurance Company, a wholly owned subsidiary of Reliance Group Holdings, Inc., to provide claims management services for the majority of Reliance's outstanding insurance policies. Under the terms of the agreement, Cambridge will receive formula and incentive based fees that include human resource costs incurred by Cambridge in connection with providing such services. Aon and its subsidiaries will not assume any underwriting risk.

The agreement involves a multi-year arrangement under which Cambridge will manage claims under policies issued by Reliance's wholly owned insurance companies, and in return for certain guarantees and incentives under the claim services agreement, terminates an existing reinsurance brokerage agreement.

Cambridge is a leader in providing claims and loss cost management services to insurance carriers, self-insured companies, reinsurers and managing general agents. Cambridge will employ most of Reliance's claims staff as of January, 2001.

Reliance stated that the definitive agreement has been vetted by external consultants and was reviewed by state insurance regulators and representatives of its bank lenders and ad hoc bondholder groups.

Patrick G. Ryan, chairman and CEO of Aon Corporation, commented, "We are very pleased to provide an outsourcing solution for Reliance's claims administration needs. Reliance's claims employees have valuable expertise and we welcome them to Aon." Ryan added, "Claims administration outsourcing is a core strategy of Aon that will enhance organic growth. While lower margin than other brokerage services, it provides significant growth opportunities given our broad experience."

George R. Baker, chief executive officer of Reliance, said, "The agreement with Cambridge is a very positive move for Reliance, its policyholders and its employees. Outsourcing our claims management operations to Cambridge will help us to ensure that policies will continue to be serviced seamlessly and efficiently as Reliance moves forward with run-off operations."

Aon Corporation (www.aon.com) is a holding company that comprises a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock is listed on the New York, Chicago, Frankfurt and London stock exchanges.

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